Sec. 7. 20-A MRSA §15657, sub-§2, as amended by PL 1999, c. 401, Pt. GG, §9, is repealed and the following enacted in its place:

2.__Local median household income.__The local median household income is divided by the statewide average median household income.__The final result is multiplied by an income weight as described in this subsection.__For fiscal year 2003- 04, the income weight used is 0.20 and for fiscal year 2004- 05, the income weight used is 0.25.__As an exception, the commissioner shall adjust the income weight used in accordance with this subsection for a school administrative unit that is located within a municipality whose weighted relative fiscal property capacity as determined under this section as a percent of the municipality's median household income is greater than the statewide weighted relative fiscal property capacity as determined under this section as a percent of the statewide median household income average.

Sec. 8. 20-A MRSA §15658, sub-§1, as enacted by PL 1995, c. 368, Pt. Z, §1 and affected by §2, is amended to read:

1. Operating costs mill rate. The operating costs mill rate, as described in chapter 606, is in effect for the limited purposes of determining the state and local shares of each school administrative unit's program costs allocation and its debt service allocation, and for determining the amount required to provide the statewide state share of the allocation for the per pupil guarantee. For each individual school administrative unit, the amounts described in section 15655, subsection 1 are used rather than the amounts in section 15608, subsection 1; section 15609, subsection 1, paragraph A; and section 15610, subsection 1, paragraph A. This subsection is repealed July 1, 2003.

Sec. 9. 20-A MRSA §15658, sub-§2 is enacted to read:

2.__Operating costs mill rate.__Beginning with fiscal year 2003-04, the operating costs mill rate, as described in chapter 606, is not in effect for the limited purposes of determining the state and local shares of each school administrative unit's program costs allocation and its debt service allocation, and for determining the amount required to provide the statewide state share of the allocation for the per pupil guarantee.__For each individual school administrative unit, the amounts described in section 15655, subsection 1 are used rather than the amounts in section 15608, subsection 1; section 15609, subsection 1,